Angie's List today announced that its Board of Directors has unanimously determined not to pursue the unsolicited proposal from IAC/InterActiveCorp to acquire the company, as previously announced on November 11, 2015.
After a comprehensive review, conducted in consultation with its independent financial and legal advisors, the Angie’s List Board determined that it is premature to conclude that a strategic transaction is in the best interests of Angie’s List shareholders. Further, the Angie’s List Board of Directors concluded that IAC’s $8.75 per share cash proposal dramatically undervalues the company and its long-term standalone prospects. The proposal represented only a 10% premium at the time it was made.
Scott Durchslag, Angie’s List President and Chief Executive Officer, said, “The Angie’s List Board and management team are united in our belief in Angie’s List and our market-leading platform. That IAC chose to announce its proposal on the same day as our public launch of LeadFeed is a testament to the strength of our evolving product and services offering. The Board does not believe it is in the best interest of Angie’s List shareholders to rush to judgment and that doing so would be contrary to our fiduciary duties. The Board believes that it should have the opportunity to fully evaluate our Profitable Growth Plan and should share that plan with shareholders before reaching a decision as to whether to engage in a transaction with IAC or any other party.”
Mr. Durchslag continued, “The development of our Profitable Growth Plan is underway, as we discussed with our third quarter results, and we look forward to announcing the details of this plan next quarter at our Investor Day. The positive reception we are receiving from members and service providers to our new offerings gives us confidence that we are heading in the right direction. The market also appears to share our enthusiasm as the Company’s stock price increased 11% on the day we announced our third quarter results and previewed some elements of our Profitable Growth Plan, and has increased 27% from that day through market close on November 11, prior to when IAC publicly announced its proposal.”